Capital Gain Estimator
Compare the potential taxes owed in a taxable sale versus the full amount you could reinvest through a 1031 Exchange.
Your Property Details
Your Estimated Gain
1031 Exchange
Defer 100% of your capital gain, depreciation recapture, state, and NII taxes.
RecommendedHypothetical Taxpayer 1
Subject to a 15% capital gain tax, 25% depreciation recapture tax, state tax, and 0% NII tax.
Hypothetical Taxpayer 2
Subject to a 20% capital gain tax, 25% depreciation recapture tax, state tax, and 3.8% NII tax.
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Join Exchange-X* The federal capital gain tax rate on appreciation in value increases from 15% to 20% when "Taxable Income" exceeds certain thresholds, adjusted annually for inflation. Consult your tax advisor for the current year's amounts.
** Gain attributable to depreciation deductions previously taken is generally subject to a 25% federal depreciation recapture tax.
*** State capital gain tax rates vary by state. Enter your state's applicable rate above.
The Net Investment Income (NII) tax of 3.8% may apply when the taxpayer's Modified Adjusted Gross Income exceeds $200,000 (single) or $250,000 (married filing jointly).
This capital gain estimator is provided to illustrate potential taxes to be paid in a taxable sale (versus a 1031 Exchange). This simplified estimator is for example purposes only. Since the calculation of taxes involves many factors and your individual situation may require additional variables not included in this illustration, please speak with your tax or legal advisors. Exchange-X does not warrant or represent the accuracy of the calculations, answers, or information provided.